Association seeks to overturn Arkansas law aimed at foreign crypto miners
The Arkansas Cryptomining Association has filed a lawsuit against state officials, including Attorney General Tim Griffin and Lawrence Bengal, in response to what they claim is an unconstitutional law restricting foreign-born U.S. citizens from engaging in crypto-mining activities. This legal action, initiated on March 13 in the U.S. District Court, follows a federal ruling from November that temporarily barred Arkansas from enforcing its law against a naturalized citizen operating a mining business. The contested regulations, namely Rule K and Act 174, ban foreign-controlled entities from establishing businesses in the state. Connor L. Kempton, the Association's director, argues these regulations violate the Equal Protection Clause of the 14th Amendment, asserting that they can lead to discriminatory practices regarding race, alienage, and national origin. Kempton highlights the law’s vagueness, suggesting it empowers officials to arbitrarily grant or deny mining permits, infringing on due process and encroaching on the federal government’s authority to regulate foreign investments. The lawsuit aims to set a precedent against such state interventions in the crypto sector.
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